9mobile Under Scrutiny as ARCON Begins Investigation into N1 Billion Advertising Debt
The Advertising Regulatory Council of Nigeria (ARCON) has announced an official investigation into the long-standing advertising debt owed by Emerging Markets Telecommunications Services Limited, popularly known as 9mobile. The debt, amounting to one billion Naira (N1B), stems from unpaid fees for advertising services rendered by various agencies.
ARCON disclosed that it received two petitions from agencies alleging that 9mobile has refused to settle its outstanding debt, despite ongoing advertising campaigns. Reports suggest that while the company has withheld payments, it has continued to engage new agencies to handle its advertising needs, raising concerns about breaches of ethical and contractual protocols.
In response, ARCON has pledged to scrutinize the movement of accounts from the owed agencies to any new agencies involved, to verify compliance with disengagement procedures, and investigate potential violations of ethical standards within the advertising ecosystem.
Dr. Olalekan Fadolapo, Director-General of ARCON, emphasized the broader implications of the debt, stating, “Advertising debts are not merely between agencies; they have a ripple effect that impacts media houses and third-party vendors, ultimately hindering the growth and sustainability of the Nigerian advertising industry. It is essential that such debts are resolved promptly to protect the integrity of the industry and promote economic growth.”
He further stressed ARCON’s commitment to enforcing industry standards, noting that the Nigerian advertising industry’s payment threshold is 45 days. “We will work closely with relevant authorities to ensure that all stakeholders adhere to ethical practices, fair competition, and timely payments. This investigation underscores our resolve to eliminate unfair advantages and uphold the principles of transparency and accountability in our industry,” Dr. Fadolapo added.
ARCON has also indicated plans to collaborate with anti-graft agencies and other government bodies to ensure a thorough investigation and resolution of the debt, viewing the issue as a potential obstacle to Nigeria’s industry growth and national economic development.